HP is the consumer PC king
 This year we clubbed together the consumer notebook and consumer desktop categories, and called it PC-Consumers. Reason—notebooks now account for more than 50 percent of the PCs sold to consumers and SOHOs.
HP with its dual brand (HP and Compaq) strategy topped this category by ranking higher on three out of five criteria. HCL, on the back of its strong tier-3 and tier-4 channel connect, came second. Lenovo and Dell both ended up with same final scores thus sharing the number three spot followed by Acer.
While the desktop business has been HCL’s strength, its notebooks are seeing good demand especially in smaller cities. Lenovo, which began the year by consolidating its consumer business under the Idea brand, has been criticized for favoring Large-Format Retailers, especially in tier-1 cities. Lenovo retailers polled blamed the vendor for letting LFRs sell products at much lower prices than theirs.
Dell made strong strides in the retail segment on the back of its brand pull, onsite warranty and better price-performance. But, respondents said, to rank higher on channel preference Dell still needs to prove its commitment and consistency.
While respondents appreciated Acer’s improved retail program, the vendor’s marketing and post-sales support need improvement. It also needs to review its LFR strategy.
Price-performance
HP was the overall price-performance leader in both the notebook and desktop category, followed by Dell, HCL, Lenovo and Acer. Despite Dell’s lower MOP, where HP scored was on the freebies it bundled with its products. Dell ranked ahead of Lenovo, Acer and HCL for notebooks, while HCL fared better for desktops, primarily because of favorable votes from resellers in smaller cities. Interestingly, Acer, despite its competitive pricing, scored the lowest on this parameter.
Marketing & branding
On this criterion HP leads, followed by Lenovo, HCL, Acer and Dell. The HP-Compaq duo enjoys strong customer pull; it was also ranked the most aggressive in rolling out consumer and channel incentive schemes. Throughout the year the company gave away freebies with its notebooks and desktops, which helped its partners sell more.
Lenovo, which ranked second on this parameter, enjoys customer pull in tier-1 and tier-2 cities, but in smaller cities it is still considered a push brand. HCL enjoys a brand pull like no other in smaller cities, and also does more promotions in these cities compared to tier-1 and tier-2 geographies. Acer lacks customer pull in small cities, while Dell lacks promotions and schemes for end-user demand generation.
Service & support
Dell’s onsite warranty policy is a clear winner. Many respondents believe that onsite warranty should become the standard in the consumer segment. HCL came in second by getting higher positive votes from smaller cities.
HP, despite the warranty woes of the past four months, ranked ahead of Lenovo and Acer. Lenovo partners polled said that the company suffers from a longer turnaround time than its peers for repair and replacement.
Though Acer’s RMA turnaround time is similar to Lenovo’s, what probably puts it behind is the consistent grouse among respondents in tier-1 and tier-2 cities about the frequent change of service partners and the lack of communication about these changes. Even the company’s Web site doesn’t have an updated list of ASPs, thus creating confusion among partners and customers.
Channel relationship
HP’s retail program was rated the most structured and consistent. Respondents appreciated the vendor’s rebate programs and its automated rebate authorization and clearance process.
HCL ranked second on this parameter because it enjoys a strong positive association with channels in tier-3 and tier-4 cities, where it outperformed even HP.
Lenovo needs to improve its clearance process as it’s currently ridden with disputes and delays. Resellers, especially in tier-2 cities, complained of frequent changes in local staff and authorized dealers, which is affecting Lenovo’s channel relationships.
Acer ramped up its retail partner network and also introduced new benefits for them. While respondents in tier-1 cities criticized its LFR strategy, those in smaller places complained of not getting regular communication about products and prices.
Dell failed to win the trust and confidence of respondents. The pricing disparity between its products sold through channels and those sold online continues to pique respondents. But Dell’s better price-performance and onsite warranty continue to push channel sales.
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